Monday 08 / July / 2024
Mumbai: The stock market ended trading on Friday on a flat note despite a record-breaking rally earlier in the week.
The BSE Sensex closed 53.07 points down at 79,996.60, falling just short of the 80,000 mark, while the NSE Nifty inched up 21.70 points to close at 24,323.85.
This mixed closing reflects a day of cautious trading, as investors weighed profit-taking against optimism from positive sectoral performances and key corporate announcements.
The Sensex, which recently hit an all-time high, faced a slight dip on the last trading day of the week. In contrast, the Nifty managed to post a modest gain, supported by advances in specific sectors.
Among the Nifty-listed companies, 34 reported gains, while 16 experienced declines, showcasing a balanced yet cautious market sentiment.
Leading the gains were companies like ONGC, Reliance Industries, and State Bank of India.
ONGC's shares were boosted by a surge in crude oil prices and a positive quarterly performance.
Reliance Industries saw upward momentum driven by strong performances in its retail and telecom segments, while State Bank of India benefited from robust banking sector performance and favourable interest rate conditions.
Other top gainers included Britannia, buoyed by strong demand for FMCG products, and Cipla, which saw a positive outlook in the pharmaceutical sector due to strong export orders.
Conversely, several major companies faced declines. HDFC Bank's shares dropped amid concerns over rising interest rates impacting loan growth. Titan saw a decline due to weaker-than-expected sales in its jewelry segment, while LTIMindtree was hit by concerns over global IT spending and competition.
Tata Steel struggled with falling steel prices and worries about global trade dynamics. IndusInd Bank also experienced a drop in its shares, driven by concerns about asset quality and exposure to stressed sectors.
A highlight of the day was Raymond's shares, which soared over 18% to a yearly peak following the announcement of its board approving the demerger of its realty business into Raymond Realty Ltd.
This strategic move is expected to unlock value for shareholders and refocus the company on its core business areas. Investors responded positively to the announcement, anticipating significant growth potential in the real estate sector.
Varun Aggarwal, founder and managing director, Profit Idea, said, "Sector-wise, the market saw varied performances. Nifty Healthcare, Nifty Pharma, Nifty FMCG, and Nifty PSU Bank led the gains, buoyed by strong earnings reports and positive market sentiment. The healthcare and pharmaceutical sectors benefited from increased demand and strong export orders, while FMCG companies enjoyed robust consumer spending."
He added, "Public sector banks gained on improved asset quality and capital infusions from the government. However, sectors like Nifty Financial Services, Nifty Private Bank, and Nifty Auto faced losses. These sectors were impacted by profit-booking and concerns over economic headwinds, including rising non-performing assets in financial services and private banks, as well as declining sales and supply chain disruptions in the auto sector."
Bajaj Auto saw a notable rise, with its shares surging over 2 per cent and hitting an intraday high of Rs 9,660 on the NSE.
This rise was driven by the launch of its first-ever CNG and petrol-powered motorcycle, the 'Freedom 125,' priced from Rs 95,000.
The new model is expected to tap into the growing demand for fuel-efficient and environmentally friendly vehicles, providing a boost to the company's market performance.
On the currency front, the Indian Rupee appreciated by 0.04 per cent against the US Dollar amid mixed global economic cues. However, gains were limited by domestic market weakness and rising crude oil prices.
Gold prices traded near resistance levels, influenced by anticipation of the US Non-Farm Payrolls (NFP) report. The report is expected to show a job gain of 190,000 for June, which could significantly shape future Federal Reserve policies and impact gold prices globally.
Indian shipbuilders like Mazagon Dock Shipbuilders, Cochin Shipyard, and Garden Reach Shipbuilders witnessed substantial market capitalization increases, collectively growing by nearly Rs 1.5 lakh crore in 2024.
This surge reflects strong investor confidence, driven by robust order books and government initiatives to boost the shipbuilding industry.
Globally, Asian markets opened positively ahead of crucial US Payroll and Job data releases, indicating a favorable economic outlook.
This optimism influenced the Indian markets, contributing to the positive sentiment despite the domestic market's mixed performance.
As the trading week comes to a close, market participants remain cautious yet optimistic, closely monitoring global economic indicators and domestic corporate developments for future trading cues.
